JP Morgan builds financial cushion as Dimon warns of uncertainty

Tuesday 14 October 2025 12:36 WIB

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JP Morgan has increased its financial protection against loan losses as its chairman Jamie Dimon warned of rising global risks and uncertainty.

Lenders set aside an additional $810 million (£610.2 million) to cover potential losses from unpaid loans.

The defense fund consists of $608 million earmarked for consumer loans – such as credit cards and mortgages – and $205 million for wholesale loans – loans to large businesses.

This increases the total potential bad debts to $3.4 billion in the third quarter of 2025, up from $2.84 billion in the previous quarter.

This comes as Dimon warned of “increasing levels of uncertainty” in the global economy.

The prominent American banker cited “complex geopolitical conditions, tariff and trade uncertainty, rising asset prices and the risk of high inflation” as persistent problems.

“As always, we hope for the best, but these complex forces reinforce why we prepare the Firm for a variety of scenarios,” Dimon added.

The US banking giant’s top line topped market expectations of $47.12 billion, with earnings per share coming in at $5.07 – topping LSEG’s forecast of $4.84.

Profit rose 12 percent to $14.39 billion compared to the previous year.

Dimon sounded the alarm on the AI ​​bubble

Dimon last week joined in warning about an AI market bubble, which leading economic names fear could lead to a “sharp market correction.”

“AI is real and will deliver total results”, Dimon told the BBC, “but most of the people involved will not succeed. Some of the money invested may be lost”.

This is in line with sentiment from the Bank of England’s Financial Policy Committee, which warned of a “crystallization of such global risks [in the AI bubble] could have a material impact on the UK as an open economy.”

World Bank Governor Andrew Bailey warned on Monday that stock markets could experience “irregular adjustments” due to rising debt levels and other vulnerabilities.

Ahead of a crucial week in Washington DC where global financial leaders prepare to discuss the future of multilateralism, Bailey said the bull market and rising sovereign debt levels had left the wider system in jeopardy.